OPERATIONS

Papa John’s delivers – on the back end

BY Dan Berthiaume

For pizza retailer Papa John’s International Inc., successful customer delivery begins with successful delivery in the supply chain.

Papa John’s is optimizing routes, improving on-time store deliveries and enhancing the performance of its transportation fleet by using transportation modeling capabilities from the Manhattan Associates Transportation Management Solution.

Papa John’s uses "probabilistic modeling" that helps shippers perform a variety of “what-if” scenarios, such as which distribution centers should service individual locations to optimize time, fuel and resources. Unlike traditional modeling tools, probabilistic modeling accounts for variability, which can provide more accurate results and produce more realistic modeling scenario outcomes.

Front-end customer service relies upon a supply chain that gets products where they are needed in a timely and cost-effective manner. Papa John’s is ensuring that its “fast food” moves just as quickly from warehouse to the store as from the store to the customer.

“Manhattan Associates’ sophisticated transportation modeling software helps us better manage the variability and complexity of our extensive transportation network and maximize the performance of our transportation fleet, a vital part of fulfilling our brand promise of ‘Better ingredients. Better pizza,’” said Eric Hartman, VP, Papa John’s.

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News

Veteran CPG executive joins BJ’s board

BY CSA STAFF

The former head of global health and well-being at Procter & Gamble is the newest member of the board of directors at BJ’s Wholesale Club.

Robert Steele will join the BJ’s board effective March 24. The 35 year veteran of Procter & Gamble currently serves on an advisory board for CVC Capital Partners, who with Leonard Green & Partners are the principal owners of BJ's. Prior to joining CVC, Steele served as vice chairman of global health and well-being at Procter & Gamble Company from 2007 until his retirement in 2011. Prior to that, during his 35 year career, Steele held numerous leadership positions including group president of global household care, group president of North America, vice president North America home care, and a variety of brand management and sales positions.

In addition to his advisory role at CVC, Steele serves on the boards of directors of Keurig Green Mountain, Inc., and Berry Plastics. He has also served on the boards of Kellogg Company, Beam Company, and for over 20 years served as a Trustee of The St. Joseph Home for Handicapped Children.

"I am thrilled to have an executive of Rob's talent and experience joining our board," said Chris Baldwin, BJ's president and CEO. "I look forward to having the benefit of Rob's expertise and guidance as we manage BJ's going forward."

BJ’s currently operates 213 clubs and 128 gas stations in 15 states.

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MOBILITY

What channel are digital buyers flocking to?

BY Dan Berthiaume

Consumer trend data shows that more than half of digital shoppers will use one specific channel for making purchases at least once within a year.

According to a new report from eMarketer, 95.1 million Americans ages 14 and older, or 51% of digital buyers, will make at least one purchase via a smartphone during 2017. This figure will rise to 55% by 2020.

2017 will be a watershed year for smartphone commerce in other ways, as well. A total of $75.51 billion, or 50% of all retail m-commerce sales, will be transacted on smartphones in 2017. That will be up from 48% in 2016. Seventy-eight percent of Americans 14 and older will shop using a smartphone in 2016, including those who browse and research, but do not buy.

As smartphones’ share of m-commerce sales continues to rise, tablets’ share will continue to fall. This year, tablets will capture 51% of m-commerce sales, with that figure falling to 49% in 2017.

In 2016, m-commerce will represent 32% of all e-commerce sales, but just 3% of total retail sales.

“In order to get people to make purchases on their phones, retailers need to make it as easy as possible for consumers,” said Yory Wurmser, eMarketer retail analyst. “That means fully optimized mobile websites, a checkout process with few steps, and fully personalized merchandising.”

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